Business Partners LLC, the CUSO founded by Telesis Community Credit Union in the early 1990s, will continue originating and servicing loans, the NCUA said Monday.
News Updates: April 2, 2012, Telesis Management Taken Over By Premier America
May 7, 2012, Telesis Reports $13.8 Million First Quarter Loss
According to Telesis' most recent NCUA Call Report, the Chatsworth, Calif.-based Business Partners is not wholly owned by the $318 million credit union, also based in Chatsworth. As of December 2011, Telesis had an investment of $4.8 million and a $10,000 aggregate cash outlay in Business Partners.
“Business Partners will continue to service the loans, business as usual,” NCUA Public Affairs Specialist John Zimmerman told Credit Union Times. “BP is a separate entity and will continue to provide loan servicing and origination.”
Zimmerman said Business Partners is servicing participation interests for approximately 180 primarily credit unions, 32 of which are lead lenders.
The NCUA said a decision has not been made concerning Telesis' stake in Autoland Inc., a California-based auto buying CUSO of which Telesis is one of three co-owners.
Formed in 1971, Autoland became a credit union-owned entity in 2007 through Telesis, and two other California cooperatives, Kinecta FCU and California Agribusiness CU, through CU Vehicles LLC, a holding company owned by the credit unions.
As of December 2011, Telesis had $3.8 million invested in and an aggregate cash outlay of $12.5 million in CU Vehicles. The credit union loaned nearly $2.3 million to the CUSO.
“CUSOs are an asset of the credit union, just like facilities or loans,” Zimmerman said. “The conservator will continue to represent the interests of Telesis with the CUSOs in which it has invested.”
Telesis was placed under conservatorship by the California Department of Financial Institutions on Friday. The NCUA was named the credit union's conservator.
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